CARROLL, one of multifamily’s top owners and operators according to the National Multifamily Housing Council, recently held a virtual townhall with leaders in the industry to discuss how multifamily real estate can lead through these changing times and where the transactional market is going. Despite the slowdown in transactions over the last 2 months, leaders are optimistic about the future even if it might look different than it did in 2019.
Joining CARROLL founder and CEO, Patrick Carroll, was Kris Mikkelsen, COO and managing director at Walker & Dunlap, Robert LaChapelle, vice chairman of debt and structured finance at CBRE, and Blake Okland, vice chairman and head of multifamily investment sales at Newmark Knight Frank.
Despite the current conditions, each leader is optimistic about the path forward in multifamily.
“We’re seeing equity trying to see where’s the mark. On the debt front it is becoming increasingly predictable…The agencies are serving the role that they were created to do…They’re coming back. They are being price competitive.” – Robert LaChapelle
“There was a saying in the last downturn, “don’t bet against the Fed.” I’m not going to bet against the Fed because they are piling money into the economy. That’s going to show up in positive ways. It has to.” – Patrick Carroll
“We’re starting to see the ice thaw…We’re seeing capital willing to get active again.” – Kris Mikkelsen
The turn came quick and caught everyone off guard, but firms quickly adapted and were bolstered by years of positive results.
“The downturn came on so fast…and how do you communicate as a leader that everything is going to be fine? You have go out there and show by example.” – Patrick Carroll
“It hit us like a freight train. We went into triage mode and had to get creative on how to structure transactions to keep them together.” - Kris Mikkelsen
So, what is the path forward? Each leader sees significant upside coming but this will likely serve as a reset for the industry.
“I think you’re going to see smaller markets benefit from this.” – Patrick Carroll
“There’s going to be far more support for quality of life decision making across all organizations…There’s the notion of suburban office becoming attractive again for continuity reasons.” – Blake Okland